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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
First BanCorp. (FBP - Free Report) is a stock many investors are watching right now. FBP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.53. This compares to its industry's average Forward P/E of 12.21. Over the last 12 months, FBP's Forward P/E has been as high as 11.80 and as low as 8.23, with a median of 9.90.
FBP is also sporting a PEG ratio of 0.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FBP's industry has an average PEG of 0.61 right now. Over the last 12 months, FBP's PEG has been as high as 0.80 and as low as 0.25, with a median of 0.67.
Another notable valuation metric for FBP is its P/B ratio of 1.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.78. Over the past year, FBP's P/B has been as high as 1.42 and as low as 0.79, with a median of 1.20.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FBP has a P/S ratio of 2.99. This compares to its industry's average P/S of 3.13.
Finally, investors should note that FBP has a P/CF ratio of 9.15. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.94. Within the past 12 months, FBP's P/CF has been as high as 19.09 and as low as 9.10, with a median of 12.67.
Another great Banks - Southeast stock you could consider is Summit Financial Group , which is a # 2 (Buy) stock with a Value Score of A.
Summit Financial Group also has a P/B ratio of 1.07 compared to its industry's price-to-book ratio of 1.78. Over the past year, its P/B ratio has been as high as 1.25, as low as 0.92, with a median of 1.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that First BanCorp. and Summit Financial Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FBP and SMMF feels like a great value stock at the moment.
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Should Value Investors Buy These Finance Stocks?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
First BanCorp. (FBP - Free Report) is a stock many investors are watching right now. FBP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.53. This compares to its industry's average Forward P/E of 12.21. Over the last 12 months, FBP's Forward P/E has been as high as 11.80 and as low as 8.23, with a median of 9.90.
FBP is also sporting a PEG ratio of 0.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FBP's industry has an average PEG of 0.61 right now. Over the last 12 months, FBP's PEG has been as high as 0.80 and as low as 0.25, with a median of 0.67.
Another notable valuation metric for FBP is its P/B ratio of 1.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.78. Over the past year, FBP's P/B has been as high as 1.42 and as low as 0.79, with a median of 1.20.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FBP has a P/S ratio of 2.99. This compares to its industry's average P/S of 3.13.
Finally, investors should note that FBP has a P/CF ratio of 9.15. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.94. Within the past 12 months, FBP's P/CF has been as high as 19.09 and as low as 9.10, with a median of 12.67.
Another great Banks - Southeast stock you could consider is Summit Financial Group , which is a # 2 (Buy) stock with a Value Score of A.
Summit Financial Group also has a P/B ratio of 1.07 compared to its industry's price-to-book ratio of 1.78. Over the past year, its P/B ratio has been as high as 1.25, as low as 0.92, with a median of 1.06.
These figures are just a handful of the metrics value investors tend to look at, but they help show that First BanCorp. and Summit Financial Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FBP and SMMF feels like a great value stock at the moment.